Mega Announces $5.25 Million Financing

Mega Silver Inc. (MSR - TSX Venture), is pleased to announce that it has entered into an agreement with PowerOne Capital Markets Limited, as lead agent on behalf of a syndicate of agents (collectively, the "Agents") in connection with a best efforts private placement offering of "flow-through" units ("FT Units") of Mega at a price of $0.75 per FT Unit for aggregate gross proceeds of up to $5.25 million.

Each FT Unit will consist of one "flow-through share" and one common share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to acquire an additional common share for a period of two years from closing at an exercise price of $1.15 per share. The FT Units will be offered by way of private placement to accredited investors in each of the provinces of Canada.

The Agents will have an option exercisable in their sole discretion until two business days prior to the closing date to increase the size of the offering by up to 15%.

Mega plans to use the gross proceeds from the sale of the FT Units for exploration programs to be conducted on its Red Lake projects in Northern Ontario.

Insider participation in this private placement is anticipated to account for up to 25% of the proceeds. The private placement is expected to close on or about September 24, 2009 and is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

Mega Silver Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Nunavut and the Yukon. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega's common shares trade on the TSX Venture Exchange under the symbol MSR.

For further information and presentation material, please review the Mega website at www.megasilver.ca

For further information, please contact:

Mega Silver Inc.

Jim Rogers, President and Chief Executive Officer

807-766-3380

ir@megasilver.ca

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

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